President Bola Tinubu has guaranteed Nigerians that there would be no more increases in the pump price of Premium Motor Spirit (PMS), better known as petrol, anywhere in the nation.
Ajuri Ngelale, Special Adviser to the President on Media and Publicity, disclosed this in Abuja while addressing the media following a closed-door meeting with the president on Tuesday.
“The president wishes to assure Nigerians, following the announcements by the Nigerian National Petroleum Company Limited (NNPC), just yesterday that there will be no increase in the pump price of petroleum motor spirit anywhere in the country,” the spokesperson said. “We repeat, the president affirms that there will be no increase in the pump price of petroleum motor spirit.”
Mr. Tinubu also admitted that inefficiencies in the downstream industries are contributing to the gasoline pricing problem. He pledged that any issues with the seamless distribution of petroleum products in the nation will be handled as soon as possible.
“The president also wishes to affirm that there are presently inefficiencies within the midstream and downstream petroleum sub-sectors that once very swiftly addressed and cleaned up will ensure that we can maintain prices where they are without having to resort to a reversal of this administration’s deregulation policy in the petroleum industry,” Mr Ngelale said.
Since Mr Tinubu’s inauguration as president on May 29, during which he announced the withdrawal of the petrol subsidy, the pump price has tripled: from approximately N200 to about N600. This has resulted in price rises for products and services, worsening the economic position of millions of Nigerians.
Palliatives suggested by the president to mitigate the impact of the reduction of gasoline subsidies have either not been implemented or have yet to be realized by Nigerians.
With Nigeria importing nearly 100% of its domestic petrol requirements and the naira-to-dollar exchange rate increasing, many Nigerians believe the petrol price will climb higher now that it has been deregulated and there is no subsidy.
However, the national oil company NNPCL has stated that it has no intentions to raise the price of gasoline, which the president has now confirmed.
If the price of gasoline is raised higher, labor groups have threatened to go on strike.Since it has been deregulated and there is no subsidy, it is expected to climb even faster.
Speaking on the threat by the labour unions, Mr Ngelale said the government sees no need for the threat.
“The president wishes to state that it is incumbent upon all stakeholders in the country to hold their peace. We have heard very recently from the organized labour movement in the country with respect to their most recent threat.
“We believe that the threat was premature and that there is a need on all sides to ensure that fact-finding and diligence is done on what the current state of the downstream and midstream petroleum industry is before any threats or conclusions are arrived at or issued,” he added.
He emphasized that contrary to some reports, there are no plans to reintroduce subsidies on petroleum products.
“The market has been deregulated. It has been liberalized and we are moving forward in that direction without looking back,” he said.
